KEYTAKEAWAYS
- Bitcoin may gain strength as a hedge against rising U.S. debt and inflation risks.
- Altcoins could benefit from capital rotation away from traditional assets.
- Tech controls and reshoring may disrupt mining and AI-integrated crypto projects
CONTENT
The Big and Beautiful Act may reshape crypto markets through inflationary pressure, tech controls, and capital shifts—despite excluding direct crypto tax reforms.
WHAT IS THE BIG AND BEAUTIFUL ACT?
The Big and Beautiful Act, officially titled The American Manufacturing Strengthening and Tech Repatriation Promotion Act, is a landmark economic and strategic bill co-sponsored by Senator Josh Hawley and Representative Elise Stefanik. Introduced in late 2024, the bill aims to bolster U.S. dominance in critical sectors such as artificial intelligence, semiconductors, and quantum computing through a mix of tax incentives, tech export controls, and supply chain restructuring.
Rooted in the “America First” doctrine, the act refers to “Big and Beautiful” as the union of heavy industry and national sovereignty—a nod to former President Donald Trump’s vision for U.S. manufacturing power. Though advanced under the Biden administration, the act is widely seen as a continuation of Trump-era economic nationalism.
🔍 🇺🇸 Why “Big and Beautiful”?
The phrase comes from Trump’s admiration for American industrial might, positioning heavy industry as “big,” and national pride as “beautiful.” While the bill has bipartisan implications, it reflects a clear ideological throughline from Trump-era economic nationalism.
🏛️ Legislative Milestones
- Dec 2024: Republican Senate leader John Thune proposes a phased legislative approach.
- May 2025: Early drafts include tax cuts, defense funding increases, and social welfare cuts.
- May 16, 2025: Budget Committee vote fails due to GOP internal divisions.
- May 22, 2025: House passes the bill by a razor-thin 215–214 vote.
- June 28 – July 2, 2025: Senate holds historic vote-a-rama session; final bill passes 51–50, with VP J.D. Vance casting the tie-breaker vote.
Trump has since called for the bill to be signed into law before July 4, declaring it the start of a new “Golden Age of America.”
>>> More to read: What is WLFI? Inspired by Trump, Powered by USD1
HOW MIGHT IT AFFECT CRYPTO?
The Big and Beautiful Act could have wide-ranging implications for the crypto industry—both direct and indirect. While not a crypto-specific bill, its sweeping policies on manufacturing, technology control, and fiscal priorities will inevitably ripple through digital asset markets. Here’s how:
✅ Hardware Supply Chain Disruption
The act’s emphasis on reshoring semiconductor production and limiting Chinese tech imports could impact the availability and cost of ASIC mining equipment, most of which is still manufactured in Asia. U.S.-based miners may face longer lead times or increased costs, potentially reshaping global mining power dynamics.
✅ Tighter Tech Export Controls
With increased scrutiny on AI and quantum technologies, blockchain projects integrating these technologies—especially in DePIN, ZK-proofs, or AI-driven oracles—could face compliance hurdles if components are deemed sensitive. Startups using foreign-built hardware may also be subject to new restrictions.
✅ Capital Flight or Rotation
The bill’s proposed tax incentives and government spending shifts may indirectly affect macroeconomic conditions such as interest rates and capital availability. If U.S. federal deficits are reduced, crypto may lose some appeal as a hedge asset. Conversely, tighter monetary policy could spark volatility, drawing in short-term speculative flows.
✅ Regulatory Signal Amplification
Though not a regulatory bill itself, the Act complements the broader U.S. pivot toward tech sovereignty and systemic risk reduction. This could embolden lawmakers and agencies (like the SEC and CFTC) to fast-track crypto-specific laws—especially targeting “systemically large” tokens like BTC and ETH.
✅ Global Crypto Realignment
As the U.S. doubles down on domestic innovation and strategic tech independence, non-U.S. crypto ecosystems may either flourish with less oversight—or become marginalized if dollar-based stablecoin regulations follow. International projects relying on U.S. partners or cloud providers could face indirect pressure.
>>> More to read: What is Trump’s Bitcoin Strategic Reserve Plan?
CRYPTO MARKET REACTION TO THE BIG AND BEAUTIFUL ACT
Although specific crypto tax reform was excluded from the final version, the $3.3 trillion fiscal package could still have far-reaching implications for digital assets. Analysts warn that the bill is expected to raise the U.S. national debt by over $3 trillion, potentially fueling long-term inflationary pressure—thereby reinforcing Bitcoin’s appeal as a hedge against fiat currency devaluation.
On the day of the Senate approval, both Bitcoin and Ethereum prices remained relatively stable. However, market participants anticipate that a weaker U.S. dollar and declining confidence in fiscal management could reignite Bitcoin’s “digital gold” narrative. Major altcoins may also benefit from a broader rotation out of U.S. bonds and into alternative assets, although infrastructure and utility tokens are likely to outperform speculative memecoins under such macroeconomic conditions.
Retail investors may respond positively to the bill’s simplified tax reporting measures and lower personal tax rates, while institutional investors could adopt a more cautious approach, concerned about ballooning debt and rising inflation. In the short term, if the House passes the bill, Bitcoin and Ethereum may see further upward momentum, potentially pushing total crypto market capitalization into the $3.5 to $3.7 trillion range.
✏️ summary
While the Big and Beautiful Act doesn’t directly target crypto, its massive fiscal impact could reshape investor behavior. Bitcoin’s role as a hedge may strengthen, altcoins could benefit from capital rotation, and market sentiment hinges on inflation and fiscal confidence going forward.
